New drivers for
The Government has instructed the Productivity Commission to examine the best way to ensure the continuing viability of the automotive manufacturing industry.
Treasurer, Joe Hockey said the inquiry had been given terms of reference that included the examination of the industry's current structure, productivity, investment, profitability, international competitiveness, exports, workforce structure and practices, skill levels and long-term sustainability.
The Commission will also look at the changing international automotive environment, including further potential for Australian-made cars to be exported overseas, and the type and level of support provided to overseas manufacturers.
† In addition, it will consider the changing nature of domestic demand and consumer preferences, including demand for new products and technologies and Australia’s attractiveness as an investment location for all phases of automotive manufacturing activity.
Mr Hockey said the inquiry will provide the Government with necessary information to respond to the challenges facing the car industry in a measured way that will focus on long-term sustainability and will identify options that are sustainable, accountable and transparent.
He said the Productivity Commission had been asked to deliver an interim report to the Government by 20 December with the final report due by 31 March next year.
“The Government is already implementing significant measures that will assist the Australian automotive industry by pledging not to proceed with the previous Government’s $1.8 billion Fringe Benefits Tax hit on the automotive sector,” Mr Hockey said.
“”Further, we have already released draft legislation to rescind the carbon tax.”
Details, including the inquiry terms of reference, are available from the Commission at this PS News link.
Edition 386, 5 November 2013